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Kraft Foods used an odd calculation of its P/E ratio to increase the stated value of the company's shares. The rosier calculation was used in a proxy filing to shareholders who will vote on plans to issue new shares to buy Cadbury. Warren Buffett's Berkshire Hathaway, one of Kraft's largest shareholders, argued against issuing new shares because they are undervalued.

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Iconic British chocolatier Cadbury accepted a takeover offer of more than $19 billion from the U.S. conglomerate Kraft Foods. The last-minute agreement, after months of sometimes-hostile talks, represents an increase from Kraft's September offer of about $16.5 billion. Major Kraft investors, including Warren Buffett's Berkshire Hathaway, had expressed concern that the deal would cost Kraft too much.

Iconic British chocolatier Cadbury has accepted a takeover offer of more than $19 billion from the U.S. conglomerate Kraft Foods. The last-minute agreement, after months of sometimes-hostile talks, represents an increase from Kraft's September offer of about $16.5 billion. Major Kraft investors, including Warren Buffett's Berkshire Hathaway, had expressed concern that the deal would cost Kraft too much.

Kraft Foods sold its frozen-pizza business to Nestlé for $3.7 billion and says it will use the proceeds to modify its offer for Cadbury. Meanwhile, Nestlé has taken itself out of the running for the U.K. confectioner. Today Warren Buffett, head of Berkshire Hathaway, which owns 9.4% of Kraft, expressed concerns about Kraft's plan to issue new shares to pay for the acquisition. He added that he wouldn't rule out backing the bid as long as the offer maintained value for Kraft shareholders.

Kraft Foods sold its frozen-pizza business to Nestlé for $3.7 billion and says it will use the proceeds to up its offer for Cadbury. Meanwhile, Nestlé has taken itself out of the running for the U.K. confectioner. Berkshire Hathaway, which owns 9.4% of Kraft, is voting against Kraft's proposal, saying that Kraft stock was an expensive currency to use for the acquisition.

Kraft Foods sold its frozen-pizza business to Nestlé for $3.7 billion and says it will use the proceeds to up its offer for Cadbury. Meanwhile, Nestlé has taken itself out of the running for the U.K. confectioner. Berkshire Hathaway, which owns 9.4% of Kraft, is voting against Kraft's proposal, saying that Kraft stock was an expensive currency to use for the acquisition.